ADD to BW1054, 1057.--(BUSINESS WIRE)--ADD to BW1054, 1057 (CITIGROUP Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. ) after last graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. xxx Corporate expenses include a reduction in incentive compensation accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. and an increase in net treasury expense. Other Information Travelers Group, which as of September September: see month. 30, 1998 had assets of $358 billion, was a diversified diversified (di·verˑ·s , integrated financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company engaged in investment services, asset management, consumer finance, and life and property casualty insurance services.
Calculation of Earnings Per Share
Third Quarter Nine Months
Citicorp Citigroup Citicorp Citigroup
(In Millions, except Travelers Pro-Forma Travelers Pro-Forma
Per Share Amounts) Group (A) Group (A)
Core Income $530 $199 $729 $2,692 $2,242 $4,934
Dividends on (19) (31) (50) (79) (93) (172)
Preferred Stock
Core Income
Applicable to 511 168 679 2,613 2,149 4,762
Common Stock --
Basic EPS
Effect of Dilutive - 6 6 - 19 19
Securities
Income Applicable to
Common Stock -- $511 $174 $685 $2,613 $2,168 $4,781
Diluted EPS
Weighted-Average
Common 451.2 1,120.3 2,248.3 450.9 1,118.6 2,245.9
Shares Outstanding
-- Basic EPS
Effect of Dilutive
Securities:
Convertible - 13.2 13.2 - 13.2 13.2
Securities
Options (B) 10.3 13.2 38.9 11.4 15.7 44.1
Warrants - 0.7 0.7 - 3.1 3.1
Restricted Stock 0.3 18.8 19.6 0.3 17.4 18.2
Adjusted -- Diluted 461.8 1,166.2 2,320.7 462.6 1,168.0 2,324.5
EPS
Citigroup Core
Earnings
Per Share
Basic - - $0.30 - - $2.12
Diluted - - 0.30 - - 2.06
(A) Citigroup pro-forma results combine those of Citicorp and
Travelers Group. Pro-forma core income per share reflects the
exchange of 2.5 Citigroup common shares for each Citicorp common
share effective October 8, 1998, when the merger was completed.
(B) Includes the dilutive effect of stock options and stock purchase
agreements, computed using the treasury stock method, and shares
issuable under deferred stock awards.
CITICORP and Subsidiaries Consolidated Statement of Income
(In Millions of Third Quarter % Nine Months %
Dollars,
Except Per Share 1998 1997 Change 1998 1997 Change
Amounts)
Interest Revenue $6,976 $6,195 13 $19,937 $18,193 10
Interest Expense 3,878 3,319 17 11,005 9,650 14
Net Interest Revenue 3,098 2,876 8 8,932 8,543 5
Provision for Credit 736 486 51 1,807 1,421 27
Losses
Net Interest Revenue
after 2,362 2,390 (1) 7,125 7,122 -
Provision for Credit
Losses
Fees, Commissions,
and Other Revenue
Fees and Commissions 1,575 1,478 7 4,569 4,271 7
Foreign Exchange 474 435 9 1,288 1,043 23
Trading Account (159) 134 NM 175 429 (59)
Securities Transactions (56) 186 NM 485 418 16
Other Revenue 562 432 30 1,852 1,344 38
Total Fees,
Commissions, 2,396 2,665 (10) 8,369 7,505 12
and Other Revenue
Operating Expense
Salaries 1,505 1,356 11 4,331 3,906 11
Employee Benefits 325 317 3 1,038 1,039 -
Total Employee Expense 1,830 1,673 9 5,369 4,945 9
Net Premises & 550 496 11 1,577 1,465 8
Equipment Expense
Restructuring Charge - 889 NM - 889 NM
Other Expense 1,530 1,179 30 4,241 3,280 29
Total Operating Expense 3,910 4,237 (8) 11,187 10,579 6
Income Before Taxes 848 818 4 4,307 4,048 6
Income Taxes 318 307 4 1,615 1,518 6
Net Income $ 530 $ 511 4 $ 2,692 $ 2,530 6
NM Not meaningful, as percentage equals or exceeds 100%.
CITICORP and Subsidiaries Consolidated Balance Sheet
Sept. Dec. %
(In Millions of Dollars) 30, 31, Change
1998 1997
Assets
Cash and Due from Banks $ 9,107 $ 8,585 6
Deposits at Interest with Banks 14,085 13,049 8
Securities, at Fair Value:
Available for Sale 35,552 30,762 16
Venture Capital 3,285 2,599 26
Trading Account Assets 40,018 40,356 (1)
Loans Held for Sale 5,183 3,515 47
Federal Funds Sold and Securities Purchased 13,412 10,233 31
Under Resale Agreements
Loans, Net:
Consumer 112,103 108,066 4
Commercial 87,706 75,947 15
Loans, Net of Unearned Income 199,809 184,013 9
Allowance for Credit Losses (6,240) (5,816) 7
Total Loans, Net 193,569 178,197 9
Customers' Acceptance Liability 1,609 1,726 (7)
Premises and Equipment, Net 5,019 4,474 12
Interest and Fees Receivable 3,549 3,288 8
Other Assets 18,952 14,113 34
Total $343,340 $310,897 10
Liabilities
Non-Interest-Bearing Deposits in U.S. Offices $ 16,315 $ 16,901 (3)
Interest-Bearing Deposits in U.S. Offices 42,318 40,361 5
Non-Interest-Bearing Deposits in Offices 10,925 9,627 13
Outside the U.S.
Interest-Bearing Deposits in Offices Outside 152,877 132,232 16
the U.S.
Total Deposits 222,435 199,121 12
Trading Account Liabilities 30,692 30,986 (1)
Purchased Funds and Other Borrowings 24,305 21,231 14
Acceptances Outstanding 1,685 1,826 (8)
Accrued Taxes and Other Expense 7,284 6,464 13
Other Liabilities 15,811 10,288 54
Long-Term Debt 19,982 19,785 1
Stockholders' Equity
Preferred Stock (Without par value) 863 1,903 (55)
Common Stock ($1.00 par value) 506 506 -
Issued Shares: 506,298,235 in each period
Surplus 6,525 6,501 -
Retained Earnings 18,621 16,789 11
Accumulated Other Changes in Equity from (871) (91) NM
Nonowner Sources (A)
Common Stock in Treasury, at Cost (4,498) (4,412) 2
Shares: 53,583,079 and 52,355,947,
respectively
Total Stockholders' Equity 21,146 21,196 -
Total $343,340 $310,897 10
(A) Amounts at September 30, 1998 and December 31, 1997 include the
after-tax amounts for net unrealized gains (losses) on securities
available for sale of ($242) million and $535 million,
respectively, and foreign currency translation of ($629) million
and ($626) million, respectively.
NM Not meaningful, as percentage equals or exceeds 100%.
CITICORP Consumer Loan Delinquency Amounts, Net Credit Losses, and
Ratios
Total
(In Millions Loans 90 Days or More Past Avg. Net Credit Losses
of Dollars, Due (A) Loans (A)
except Loan Sept. Sept. June Sept. 3rd 3rd 2nd 3rd
Amounts in 30, 30, 30, 30, Qtr. Qtr. Qtr. Qtr.
Billions) 1998 1998 1998 1997 1998 1998 1998 1997
Citibanking $ 70.1 $2,119 $1,995 $2,082 $ 69.0 $144 $144 $135
Ratio 3.02% 2.93% 3.07% 0.83% 0.85% 0.80%
Cards:
U.S. 61.2 924 942 806 60.3 795 842 639
Bankcards (B)
Ratio 1.51% 1.58% 1.76% 5.23% 5.73% 5.58%
Other (C) 10.0 230 220 182 9.5 112 103 90
Ratio 2.31% 2.30% 1.98% 4.66% 4.42% 3.92%
Private Bank 16.4 195 197 146 16.3 1 - (4)
Ratio 1.19% 1.23% 0.94% 0.02% NM NM
Total Managed 157.7 3,468 3,354 3,216 155.1 1,052 1,089 860
Ratio 2.20% 2.19% 2.32% 2.69% 2.88% 2.50%
Securitization
Activity
Credit Card (40.4) (611) (601) (452) (39.9) (539) (542) (378)
Receivables
Loans Held (5.2) (38) (40) (34) (5.2) (34) (37) (30)
for Sale
Total Loans $112.1 $2,819 $2,713 $2,730 $110.0 $479 $510 $452
Ratio 2.51% 2.53% 2.51% 1.72% 1.86% 1.67%
Managed
Portfolio:
Developed $123.7 $2,720 $2,707 $2,763 $121.6 $913 $956 $769
Ratio 2.20% 2.25% 2.66% 2.97% 3.24% 2.98%
Emerging 34.0 748 647 453 33.5 139 133 91
Ratio 2.20% 1.95% 1.31% 1.65% 1.61% 1.06%
Emerging
Portfolio (D):
Asia Pacific $22.6 $448 $374 $253 $22.2 $60 $63 $38
Ratio 1.99% 1.70% 1.04% 1.10% 1.16% 0.63%
Latin America 9.9 254 227 162 9.9 70 61 45
Ratio 2.56% 2.28% 1.83% 2.82% 2.51% 2.09%
CEEMEA (E) 1.5 46 46 38 1.4 9 9 8
Ratio 3.13% 3.40% 2.67% 2.71% 2.86% 2.13%
(A) The ratios of 90 days or more past due and net credit losses are
calculated based on end-of-period and average loans,
respectively, both net of unearned income.
(B) The U.S. bankcards managed ratios of 90 days or more past due and
net credit losses were reduced by 11 basis points and 23 basis
points, respectively, in the current quarter, and by 12 basis
points and 24 basis points in the preceding quarter, due to the
addition of the UCS portfolio.
(C) Includes bankcards outside of the U.S., worldwide Diners Club,
and private label cards.
(D) Includes Private Bank and excludes Japan.
(E) Central and Eastern Europe, Middle East, and Africa.
NM Not meaningful.
CITICORP Other Revenue Third Quarter % Nine Months %
(In Millions of 1998 1997 Change 1998 1997 Change
Dollars) (A) (A)
Credit Card $374 $134 NM $ 863 $ 417 NM
Securitization Activity
Venture Capital (31) 235 NM 404 501 (19)
Affiliate Earnings 47 51 (8) 118 222 (47)
Net Asset Gains 142 (6) NM 371 150 NM
Other Items 30 18 67 96 54 78
Total $562 $432 30 $1,852 $1,344 38
(A) Reclassified to conform to the latest quarter's presentation.
NM Not meaningful, as percentage equals or exceeds 100%.
CITICORP
Provision for Credit Third Quarter % Nine Months %
Losses
(In Millions of 1998 1997 Change 1998 1997 Change
Dollars)
Global Consumer Net $479 $452 6 $1,415 $1,399 1
Write-Offs
Global Corporate
Banking 232 9 NM 317 (53) NM
Net Write-Offs
(Recoveries)
Additional Provision 25 25 - 75 75 -
Total $736 $486 51 $1,807 $1,421 27
NM Not meaningful, as percentage equals or exceeds 100%.
CITICORP Credit Loss Reserves Sept. Dec. Sept.
(In Millions of Dollars) 30, 31, 30,
1998 1997 1997
Aggregate Allowance for Credit Losses:
Global Consumer (A) $2,911 $2,487 $2,470
Global Corporate Banking 3,429 3,429 3,429
Total Aggregate Allowance for Credit Losses 6,340 5,916 5,899
(B)
Reserves for Securitization Activities (C) 66 85 89
Total Credit Loss Reserves $6,406 $6,001 $5,988
Allowance As a Percent of Total Loans:
Global Consumer 2.60% 2.30% 2.27%
Global Corporate Banking (D) 3.80% 4.38% 4.60%
Total 3.12% 3.16% 3.20%
(A) The balance at September 30, 1998 includes $320 million of credit
loss reserves related to the acquisition of UCS.
(B) Includes $6.2 billion attributable to loans and loan commitments
as a deduction from Loans, $50 million attributable to standby
letters of credit and guarantees included in Other Liabilities,
and $50 million attributable to derivative and foreign exchange
contracts reported as a deduction from Trading Account Assets at
September 30, 1998.
(C) Attributable to mortgage loans sold with recourse.
(D) Excludes allowance portion attributable to standby letters
of credit and guarantees, and derivative and foreign
exchange contracts.
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